How should a permanent loss in value of an investment using the equity method be treated?
A. No adjustment is necessary.
B. A loss is reported in the same manner as a loss in value of other long-term assets.
C. The investor's stockholders' equity is reduced.
D. The equity in investee income is reduced.
E. Record an offset to cash.
Answer: B
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Vouching of transactions deals with which of the following?
a. Testing forward. b. Testing backward. c. Testing at a point in time. d. Directional testing either forward or backward.
Which balance sheet accounts are affected by operating activities?
A) current assets and current liabilities. B) long-term assets. C) long-term liabilities. D) stockholders' equity.
The services market sells diverse services such as legal advice, auto repair, and dry cleaning; along with finance, insurance, and real estate businesses, and transportation, ________ and public utility firms, and not-for-profit organizations, these firms represent about 75 percent of all industrial firms.
A. communication B. retailing C. government units D. manufacturing E. wholesaling
Stock index options can be used for which of the following investment purposes?
I. protect a portfolio from market declines II. speculate on the price appreciation of a particular common stock III. take advantage of a leverage opportunity IV. create a portfolio hedge A) I and IV only B) II and IV only C) I and III only D) I, III and IV only